A recent article posted on Business2Community.com entitled “How to Close the Deal and When to Walk Away When Buying or Selling a Business” explains the business sale process and how to differentiate between a good deal and a bad deal during the process. Closing a deal involves quite a bit of legwork, including producing a letter of intent, doing due diligence, acquiring financing, signing a purchase agreement, and actually closing the deal. These items can be easier with the help of a business advisor, broker, or attorney, but emphasis should be placed on the due diligence aspect: knowing the business inside and out is vital to a successful sale.
Walking away from a deal can be difficult for a motivated buyer, but is sometimes necessary to avoid emotional and financial disaster. The following red flags help to signify that it's time to walk away:
Inconsistencies
Neglect
Undisclosed Problems
Poor Credit Rating
The Industry is in Decline
Being prepared is one of the best things that a … [Read more...]

A recent article posted on Business2Community.com entitled “How to Close the Deal and When to Walk Away When Buying or Selling a Business” explains the business sale process and how to differentiate between a good deal and a bad deal during the process. Closing a deal involves quite a bit of legwork, including producing a letter of intent, doing due diligence, acquiring financing, signing a purchase agreement, and actually closing the deal. These items can be easier with the help of a business advisor, broker, or attorney, but emphasis should be placed on the due diligence aspect: knowing the business inside and out is vital to a successful sale.
Walking away from a deal can be difficult for a motivated buyer, but is sometimes necessary to avoid emotional and financial disaster. The following red flags help to signify that it's time to walk away:
Inconsistencies
Neglect
Undisclosed Problems
Poor Credit Rating
The Industry is in Decline
Being prepared is one of the best things that a … [Read more...]

Two businesses could report the same numeric value for earnings but that doesn't always tell the whole story. As it turns out, there is far more to earnings than may initially meet the eye. While two businesses might have a similar sale price, that certainly doesn't mean that they are of equal value.
In order to truly understand the value of a business, we must dig deeper and look at the three key factors of earnings. In this article, we'll explore each of these three key earning factors and explore quality of earnings, sustainability of earnings after acquisition and what is involved in the verification of information.
Key Factor # 1 – Quality of Earnings
Determining the quality of earnings is essential. In determining the quality of earnings, you'll want to figure out if earnings are, in fact, padded. Padded earnings come in the form of a large amount of “add backs” and one-time events. These factors can greatly change earnings. For example, a one-time event, such as a real … [Read more...]

Listing agreements are very common when it comes to selling a business. In order to sell a business using a business broker, a listing agreement is usually required. In this article, we will explore this essential agreement and why it is so critical.
Signing a listing agreement legally authorizes the sale of a business. The fact is that signing a listing agreement serves to represent the end of ownership, which for many business owners, means heading into new territory. Quite often owning a business is more than “owning a business,” as the business represented a dream and/or a way of life.
Walking away from the dream or lifestyle represents a significant change. For many owners this is the end of a dream. It is not uncommon for many business owners to have started a business from “scratch,” and it is also only human to feel at least somewhat attached to the creation. Phrased another way, walking away from a business that one has worked on and cared for is often easier said than … [Read more...]

When it comes to your deal being completed, having a signed Letter of Intent is great. While everything may seem as though it is moving along just fine, it is vital to remember that the deal isn't done until many boxes have been checked.
The due diligence process should never be overlooked. It is during due diligence that a buyer truly decides whether or not to move forward with a given deal. Depending on what is discovered, a buyer may want to renegotiate the price or even withdraw from the deal altogether.
In short, it is key that both sides in the transaction understand the importance of the due diligence process. Stanley Foster Reed in his book, The Art of M&A, wrote, “The basic function of due diligence is to assess the benefits and liabilities of a proposed acquisition by inquiring into all relevant aspects of the past, present, and predictable future of the business to be purchased.”
Before the due diligence process begins, there are several steps buyers must take. … [Read more...]

Leases can, and do, play a significant role in the buying or selling of businesses. It can be easy to overlook the topic of leases when focusing on the higher profile particulars of a business. However, leases are a common feature of many businesses and simply can't be ignored.
Leases and Working with Your Attorney
Whenever a small business is sold, it is common that leases play a major role. In general, there are three different types of leasing arrangements. (If you have any questions about your lease, then you should consult with your attorney. Please note that the advice contained in this article shouldn't be used as legal advice.)
Three Different Lease Options
In the next section, we will examine three of the most common types of leases. The sub-lease, new lease and assignment of lease all function in different ways. It is important to note that each of these three classes of leases can have differing complicating factors, which again underscores the value and importance of … [Read more...]

Partnership agreements are essential business documents, the importance of which is difficult to overstate. No matter whether your business partner is essentially a stranger or a lifelong friend, it is prudent to have a written partnership agreement.
A good partnership agreement clearly outlines all rights and responsibilities and serves as an essential tool for dealing with fights, disagreements and unforeseen problems. With the right documentation, you can identify and eliminate a wide range of potential headaches and problems before your business even starts.
Determining the Share of Profits, Regular Draw, Contributing Cash and More
Partnership agreements will also outline the share of profits that each partner takes. Other important issues that a partnership agreement should address is determining whether or not each partner gets a regular draw. Invest considerable time to the part of the partnership agreement that outlines how money is to be distributed, as this is an area … [Read more...]

At first glance the idea of buying a business with no collateral may seem impossible, but in reality it can be done. Let's examine your options. When it comes to achieving this goal, your greatest assets are an open mind and a commitment to hanging in there despite the odds.
The Small Business Association's 7 (a) Program is Your Friend
One possible avenue for buying a business with zero collateral is to opt for the SBA's 7 (a) program, which works to incentivize the bank to make a loan to a prospective buyer. Under this program, the SBA guarantees 75%. The buyer still has to put in 25%; however, this money doesn't necessarily have to be his or her money. This is where things really get interesting. The cash that the buyer uses can come from investors or even be a gift from parents in the case of young buyers. These possibilities all fall within the SBA's guidelines.
Look into Seller Financing, You Might Be Surprised
There is a second way to buy a business with no collateral, and … [Read more...]

While being a business owner may in the end not be for everyone, there is no denying the great rewards that come to business owners. So should you buy a business of your own? Let's take a moment and outline the diverse benefits of owning a business and help you decide whether or not this path is right for you.
Do You Want More Control?
A key reason that so many business savvy people opt for owning a business is that it offers a high level of control. In particular, business owners are in control of their own destiny. If you have ever wished that you had more control over your life and decisions, then owning a business or franchise may be for you.
Owning a business allows you to chart your own course. You can hire employees to reduce your workload once the business is successful and, in the process, free up time to spend doing whatever you like. This is something that you can never hope to achieve working for someone else; after all, you can't outsource a job.
Keep in mind that … [Read more...]

Before you jump in and buy any business, you'll want to do your due diligence. Buying a business is no time to make assumptions or simply wing it. The only prudent course is to carefully investigate any business before buying, as the consequences of not doing so can in fact be rather dire. Let's take a quick look at the three top overlooked areas to investigate before signing on the dotted line and buying a business.
1. Retirement Plans
Many buyers forget all about retirement plans when investigating a business prior to purchase. However, a failure to examine what regulations have been put into place could spell out disaster. For this reason, you'll want to make certain that the business's qualified and non-qualified retirement plans are up to date with the Department of Labor. There can be many surprises when you buy a business, but this is one you want to avoid.
2. 1099's and W-2's
Just as many prospective buyers fail to investigate the retirement plan of a business, the same … [Read more...]

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Displays Unlimited

“Mary Jane and her staff at Dailey Resources sold our business in less than a year (even in this uncertain economy). ...

2014-04-02T13:18:31+00:00

“Mary Jane and her staff at Dailey Resources sold our business in less than a year (even in this uncertain economy). And she did it by bringing in a steady stream of potential buyers/viable offers. Her advertising skills are just superb and her staff is incredibly dedicated. Dailey Resources was on-call and available anytime we had a question. Dailey's staff of Intermediaries carefully guided us through the process and helped us get the price and terms we wanted. We never want to go through that again (we’ve retired). But if we did, we would certainly hire Dailey Resources to close the deal”. Timothy M. Nentrup, Seller

http://daileyresources.com/testimonials/displays-unlimited/

The Shadow Agency

Buyer: “On behalf of my Partners and myself, I would like to express our appreciation for your assistance in the...

2014-04-02T13:22:05+00:00

Buyer: “On behalf of my Partners and myself, I would like to express our appreciation for your assistance in the three business acquisitions we made during the last 5 months. From the beginning we were aware that you had been retained by the Seller and your responsibility was to the Seller. But the high level of professionalism, integrity and honesty displayed by Dailey Resources, gave us as buyers a feeling of confidence. Based upon our experience we would not hesitate to recommend Dailey Resources, Inc., to any potential Seller or Buyer of a business.” - Jerry Wood, Buyer, The Shadow Agency - Seller: “You know it is really sad that it took me longer to write a letter of recommendation than it took you to sell my business.” Charles Tinsley, Seller, The Shadow Agency

http://daileyresources.com/testimonials/shadow-agency/

Goldenlook Of Texas & Goldenlook International

“With your tremendous experience and solid support you led us through difficult moments with confidence and clarity to the successful...

2014-04-02T13:23:21+00:00

“With your tremendous experience and solid support you led us through difficult moments with confidence and clarity to the successful sale of the companies. We would highly recommend Dailey Resources, Inc. to any potential Business Seller or Buyer.” - Bruce and Pat Bolzenthal, Sellers

Stringer’s Chem-Dry

“Your staff has the focus, know-how and experience to see this deal through. After going through this process I now...

2014-04-02T13:24:19+00:00

“Your staff has the focus, know-how and experience to see this deal through. After going through this process I now believe there is absolutley no way I would have been successful in selling my business on my own. I would highly recommend anyone wanting to sell their Business (or buy one) to enlist the aid of Dailey Resources, Inc. You have helped me achieve one of most important long term goals, and I am forever grateful.” - Gary K. Stringer, Stringer’s Chem-Dry

http://daileyresources.com/testimonials/stringers-chem-dry/

Weaver Lube Center

“Based on our experience we would not hesitate in recommending Dailey Resources, Inc. to any potential seller or buyer of...

2014-04-02T13:25:31+00:00

“Based on our experience we would not hesitate in recommending Dailey Resources, Inc. to any potential seller or buyer of a business. We hope to have the opportunity to work with you on another deal in the future.” - Jerry W. Wood, Buyer, The Shadow Agency, Weaver Lube Center, In-N-Out Lube Scott Williamson, Buyer “My recommendations for any Buyer would be to seek the expert assistance that Dailey Resources, Inc. provides. It has been a pleasure working with you and your staff.” - Scott Williamson, Buyer

http://daileyresources.com/testimonials/weaver-lube-center/

Interlink Carrier

“Thank you Dailey Resources, Inc. You did a fabulous job selling Interlink (for which I am eternally grateful). I do...

2014-04-02T13:26:24+00:00

“Thank you Dailey Resources, Inc. You did a fabulous job selling Interlink (for which I am eternally grateful). I do not think that anyone else could have represented the value of my company as well as you did. I trust you and everyone at Dailey Resources and therefore I am very confident in recommending you. Please be assured that anytime that I run into someone wanting to sell… or buy a business, I will be referring them to you. They need to start the process with you and finish with you.” - Russell Tether, Seller

http://daileyresources.com/testimonials/interlink-carrier/

Texas Advertising & Design

“I will recommend your organization to anyone interested in either buying or selling a business. I was impressed with your...

2014-04-02T13:27:29+00:00

“I will recommend your organization to anyone interested in either buying or selling a business. I was impressed with your knowledge and ability to handle the whole process.” - Brian Lynch, Seller, Texas Advertising and Design

http://daileyresources.com/testimonials/texas-advertising-design/

Semi-Trailer Mobile Repair Service

“You will never know how much it means to have someone to work with that cares about others and what...

2014-04-02T13:29:11+00:00

“You will never know how much it means to have someone to work with that cares about others and what they want to accomplish. When talking with any one of you on the phone, it is a pleasure.” - Joseph L. Stevens, Seller, Semi Trailer Mobile Repair Service

Forrester Distributing

“Thank you for a job well done. Be assured that I will recommend Dailey Resources, Inc. to anyone that needs...

2014-04-02T13:30:12+00:00

“Thank you for a job well done. Be assured that I will recommend Dailey Resources, Inc. to anyone that needs to find a business.” - Roger Lambdin, Buyer, Forrester Distributing

http://daileyresources.com/testimonials/forrester-distributing/

Uptime Corporation

“Dailey was forthright at all phases of our deal. We never had to be concerned with whether we were being...

2014-04-02T13:30:57+00:00

“Dailey was forthright at all phases of our deal. We never had to be concerned with whether we were being misled or misinformed. If we had to come up with one word to describe Dailey Resources, Inc., it would be “INTEGRITY”. - Bryon L. Hay, Seller, Uptime Corporation

http://daileyresources.com/testimonials/uptime-corporation/

Electrotech Systems, Inc.

“I want to thank you for making this whole transaction work out. Your ability to match my capabilities and interests...

2014-04-02T13:31:55+00:00

“I want to thank you for making this whole transaction work out. Your ability to match my capabilities and interests with the right business was uncanny. Your skill in navigating through the financial and governmental maze made the trip considerably easier.” - Richard Pell, Buyer, Electrotech Systems, Inc

http://daileyresources.com/testimonials/electrotech-systems-inc/

Identitec

“Thank you, Mary Jane, for the tremendous value Dailey Resources, Inc. provided to me as a buyer. You made my...

2014-04-02T13:32:40+00:00

“Thank you, Mary Jane, for the tremendous value Dailey Resources, Inc. provided to me as a buyer. You made my dream of owning a business become a reality.” - John Pichler, Buyer, Identitec